Olympic gymnast turned entrepreneur Jackson Payne is pictured in Edmonton, on Wednesday October 21, 2020. Payne has started a crowdsourced delivery company called Deeleeo in Edmonton. He was inspired to start the company after selling plenty of stuff on Kijiji and Facebook Marketplace but finding people didnt want to drive to get it. THE CANADIAN PRESS/Jason Franson

Olympic gymnast turned entrepreneur Jackson Payne is pictured in Edmonton, on Wednesday October 21, 2020. Payne has started a crowdsourced delivery company called Deeleeo in Edmonton. He was inspired to start the company after selling plenty of stuff on Kijiji and Facebook Marketplace but finding people didnt want to drive to get it. THE CANADIAN PRESS/Jason Franson

What’s the Deeleeo? Pandemic spurs resurgence in crowdsourced delivery apps

Even Walmart considered using customers to drop off U.S. orders, but abandoned the idea.

Olympic gymnast Jackson Payne has been a Kijiji and Facebook Marketplace aficionado for years, but shortly after negotiating a price on whatever he was selling on the platforms, he always encountered a conundrum: getting the item to its new owner.

“It would be a 45-minute to an hour’s drive … and they wouldn’t want to come pick it up and I wouldn’t want to go deliver it,” Payne said.

So when he retired from his athletic career at the end of August, he decided it was time to do something about it.

That something is Deeleeo, an Edmonton-based app that aims to bring convenience and affordability to the courier industry by letting anyone sign up to transport goods.

Deeleeo, which recently had its soft launch, has been used by locals to speedily drop off presents or loan out items to friends and family and by small businesses to get purchases to buyers.

Experts say it’s an opportune time for peer-to-peer or crowdsourced delivery services specializing in non-perishable goods because many Canadians are staying home and such apps allow consumers to send items without a requiring a mask or a trip outdoors.

It’s a reversal from a few years ago when similar services were calling it quits, citing low demand and more interest in food delivery.

The most high profile courier service to close was Uber Technologies Inc.’s Rush, which operated in San Francisco, New York and Chicago between 2014 to 2018. The company chalked up the closure as a “bold bet” that didn’t work out and refocused on UberEats.

Courier DHL and a group of German design students explored a similar service called Bring Buddy, but it was cancelled seven years ago and the company hasn’t used crowdsourcing since.

Even Walmart considered using customers to drop off U.S. orders, but abandoned the idea.

Others thought crowdsourced deliveries still had potential, but zeroed in on the commercial markets by undercutting postal services and big-name shipping companies with cheaper prices and lower wait times.

Payne insists there is a market for his service because it can get deliveries where they need to go quicker or more cheaply than traditional options.

Small packages going a short distance can be delivered for as low as $9, while bigger items needing to travel hundreds of kilometres can cost $70, he said.

Couriers earn between 75 and 80 per cent of the delivery fee and make premiums for the more items they deliver.

“I have family members that don’t have jobs right now and I see the struggle, so if Deeleeo can provide a temporary, part-time or even full-time solution to raising the funds they need to support their family, I’m happy to see that,” Payne said.

Just as Payne was readying to launch Deeleeo, Uber was reconsidering crowdsourced deliveries again.

Despite its Rush troubles, it launched Uber Connect, a Deeleeo competitor, at the end of May in Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal.

Connect likely won’t be the last new crowdsourced delivery option.

A 2016 McKinsey study valued the global parcel delivery market at more than $108 billion and said it’s growing so fast that shipping volumes could double by 2026.

While crowd-based shipping models can be attractive because of their affordability, the report warned that such services will likely only play a minor role in the industry because they can be fraught with legal issues and it can be difficult to source drivers during peak periods if they sign up with multiple companies.

McKinsey, however, suggested the services could excel at managing “ultra peak demand” like the December holiday rush that already prompted Canada Post to plead with consumers to get their parcels shipped early.

Holiday seasons like Valentine’s Day and Christmas have been a boon for years, but the pandemic is producing a surge too, said Kristine Hubbard, operations manager at Beck, a Toronto taxi service that has offered deliveries through its cabs for as long as she can remember.

“We’re finding, in the interest of not wanting to go out or be in direct contact with family members, people will send some cookies they’ve made or maybe it’s a blanket or maybe you know it’s some tool they’re going to lend,” Hubbard said.

Beck follows the city-mandated $10 parcel minimum and charges that rate for the first three kilometres and $2.50 for every additional kilometre.

There are no hard rules around what it will ship. Most items, including food or forgotten house or car keys, are fine, but Hubbard has had to veto some requests.

“We’ve been asked to transport a snake. That was a hard no,” she said.

“Some people have asked to send babies alone.”

While such services are fulfilling an important need during the health crisis, Wendy Cukier, a research lead at both the Future Skills Centre and Women Entrepreneurship Knowledge Hub, worries about their affects on the workforce.

Uber and Deeleeo — much like food delivery services — rely on independent contractors and were developed to offer convenience to consumers and a money generator for people out of work or looking to pad their incomes.

The problem with services relying on independent contracting is they often don’t offer stable wages, employment benefits or health insurance, said Cukier.

She wishes services and regulators thought more about how big an impact universal basic income and portable benefits, which move with people as they change jobs or employers, can have on workers and the economy.

“Make no mistake about it … some employers are constructing new arrangements so that they don’t have to invest in long-term employees,” she said.

“We have to make sure we don’t leave anyone behind.”

Tara Deschamps, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusFood

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Brett Alexander Jones is wanted on several warrants province-wide, in connection with multiple charges. Jan. 21, 2021. Kitimat RCMP photo
Kitimat RCMP searching for man wanted on several warrants province-wide

Jones is described as a five-foot 10-inches Caucasian man, with blond hair and blue eyes.

Lake Babine Nation closure sign
Lake Babine Nation issues COVID numbers update

Urges members to follow provincial health orders

NH representative confirmed that people who received their first dose will be scheduled to receive their second dose within the recommended timeframe.(The Canadian Press/Nathan Denette photo)
Vaccine rollout abruptly halted in Lakes District

Northern Health cites Pfizer shipment delays for the vaccine distribution disruption

Administering naloxone to a person experiencing a benzo-related overdose event won’t help. Naloxone is used to neutralize opioids. (Jenna Hauck/The Progress file photo)
Northern Health warning drug users of potential benzo contamination

The drug does not respond to naloxone, and is being included in street drugs

Businesses continue to struggle under COVID-19 restrictions as the pandemic reaches the one-year mark. (B.C. government)
Another 564 COVID-19 cases, mass vaccine plan coming Friday

15 more deaths, community cluster declared in Williams Lake

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Interprovincial travel restrictions a no-go, Horgan says after reviewing legal options

The B.C. NDP government sought legal advice as concerns of travel continue

Gem Lake Top, at Big White Ski Resort, seen at Jan. 8. (Big White Ski Resort)
Big White cancels $7.3M in lift tickets, accommodations due to COVID-19 orders

Since November, the ski resort has been forced to make several changes

Jan. 21 marks the 21st day of the 21st year of the 21st century, according to some. (Black Press Media file photo)
The 21st day of the 21st year of the 21st century is upon us

Milestone won’t be back for another 100 years

Darlene Curylo scratched a $3M ticket, BCLC’s largest ever scratch and win prize. (BCLC)
Kelowna woman in shock after winning BCLC’s largest-ever instant-ticket prize

Darlene Curylo couldn’t believe her eyes when she saw the amount of money she’d won from a scratch ticket

While each person has different reasons for becoming homeless, a UBCO study shows they learn through their interactions with different services to perform ‘as homeless’ based on the expectations of service providers. (Contributed)
Kelowna homeless forced to ‘perform’ for resources, says UBCO study

One participant in the study said ‘It is about looking homeless, but not too homeless’

Gov. Gen. Julie Payette takes the royal salute from the Guard of Honour as she makes her way deliver the the throne speech, Wednesday, September 23, 2020 in Ottawa. THE CANADIAN PRESS/Fred Chartrand
Gov. Gen. Julie Payette resigns, apologizes for ‘tensions’ at Rideau Hall

Payette, who is the Queen’s representative in Canada, has been the governor general since 2017

Grounded WestJet Boeing 737 Max aircraft are shown at the airline’s facilities in Calgary, Alta., Tuesday, May 7, 2019. WestJet will operate the first commercial Boeing 737 Max flight in Canada today since the aircraft was grounded in 2019 following two deadly crashes. THE CANADIAN PRESS/Jeff McIntosh
Passengers unfazed as WestJet returns Boeing 737 Max to service on Vancouver flight

After a lengthy review process, Transport Canada cleared the plane to return to Canadian airspace

The top part of the fossil burrow, seen from the side, with feathery lines from the disturbance of the soil – thought to be caused by the worm pulling prey into the burrow. (Paleoenvironntal Sediment Laboratory/National Taiwan University)
PHOTOS: SFU researchers find evidence of ‘giant’ predatory worms on ocean floor

Fossils found the prove the existence of an ancient Taiwanese worm as long as two metres

Most Read